MANAGING THE...

How provosts and chief financial officers are navigating the future of higher education

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MANAGING THE ENTERPRISE TOC»

THE CHRONICLE OF HIGHER EDUCATION

TABLE OF CONTENTS

14 TOMORROW’S COLLEGE: INSTITUTIONAL TRANSFORMATION

07 THE STATE OF HIGHER EDUCATION IN 2015 25 CONCLUSION

26 METHODOLOGY11 THE FUTURE OF THE FACULTY

04 EXECUTIVE SUMMARY 19 THE PROMISE OF CHANGE: BEST

PRACTICES, NEW TECHNOLOGY

06 INTRODUCTION 23 CHIEF ACADEMIC & FINANCIAL OFFICERS: THE STATE OF THEIR PROFESSIONS

Managing The Enterprise: How Provosts and Chief Financial Officers are Navigating the Future of Higher Education is based on a survey conducted by Huron Consulting Group, was written by Jeffrey J. Selingo, contributing editor at The Chronicle of Higher Education, Inc. and is sponsored by Axiom. The Chronicle is fully responsible for the report’s editorial content. Copyright © 2015.

http://www.chronicle.com

4



For much of the modern history of American higher education, the academic side

of institutions has enjoyed a relatively high degree of autonomy from the business

side. As mission-driven organizations, colleges and universities always were adding

programs and people as enrollment grew and knowledge expanded. Higher tuition

was often just a by-product of doing business.

But a focus in recent years on controlling spending and improving student

outcomes has put pressure on both academic and financial officials to work more

closely together on allocating resources to sustain current programs and plan for a

future of tighter budgets. In doing so, both sides have had to learn the motivations

and mindsets of the other.

An extensive survey of college and university chief academic officers (CAOs) and

chief financial officers (CFOs), conducted by The Chronicle of Higher Education

in February 2015, found that the two sides largely agree about many issues facing

higher education and their institutions. For instance, both groups worry about

the financial sustainability of American higher education: three-fourths of chief

academic officers and chief financial officers think it’s going in the wrong direction.

But on a host of other issues, the two groups of senior leaders don’t always see eye-

to-eye. Provosts, for example, were twice as likely as CFOs to say that the current

discussion about the amount of academic transformation needed on college cam-

puses was overblown.

The survey, completed by more than 400 provosts and chief financial officers at

two- and four-year colleges, focused on their attitudes about financial sustainability,

the future of the faculty, academic innovation, and their own careers. Among the key

findings of the survey:

EXECUTIVE SUMMARY

A recent focus on controlling spending and

improving student

outcomes has put pressure on both academic

and financial officials to work

more closely together.


5



INSTITUTIONAL CHALLENGESThe decline in state appropriations

is most worrisome to the leaders

of both two- and four-year public

colleges, far outweighing concerns

about the competition for students,

which was the top issue identified

by provosts and CFOs of private

colleges.

LEADING ACADEMIC TRANSFORMATIONWhile CFOs and CAOs disagreed

on the intensity of public discus-

sions about the need for academic

transformation, they both did agree

that presidents should more often

lead the process than any other of-

ficial at the institution. But CAOs

wanted a chance to lead, too. They

were more likely than CFOs to

say they should be in charge of the

transformation process.

AGING FACULTYAs the ranks of their faculty

age quickly, some 40 percent of

academic and financial leaders

reported that professors

“frequently” stay on the job longer

than the institution would like,

largely remaining for financial rea-

sons, but also quite often because

they love their jobs.

LEADERSHIP TALENTAt a time when senior college

leaders are retiring and the job is

becoming more difficult, some 40

percent of CAOs and CFOs said

it was difficult to recruit someone

for their most recent cabinet-level

opening.

FUTURE OF THE FACULTYHalf of survey respondents said

they were concerned that faculty

members working past traditional

retirement were taking positions

needed elsewhere at the institution

and were inhibiting the ability of

the college to offer competitive

salaries and benefits to junior

faculty and staff members.

USE OF CONSULTANTSHalf of CAOs and CFOs said that

their institutions hired an external

consultant or made a major in-

vestment in technology to support

cost-cutting moves in the past

three years. However, 46 percent of

them said that those investments in

consultants or technology under-

delivered on their promises.


6



INTRODUCTION

The news in the spring of 2015 that

Sweet Briar College in Virginia was

shutting down rippled across higher

education institutions nationwide. If

an institution with an endowment of

$84-million could close so suddenly,

what did that say for other institutions

grappling with enrollment and financial

challenges? Sweet Briar’s president,

James F. Jones Jr., said no amount of

wishing would change “the national

vectors, the marketplace vectors.”

The financial and demographic pres-

sures facing colleges and universities

have never been greater. According to

Moody’s Investors Service, about three

out of every four institutions have flat or

declining net-tuition revenue. That’s the

cash, left after giving out financial aid,

that institutions invest in new academic

programs, buildings, and faculty. About

half of small private colleges and regional

public institutions missed either their

enrollment or revenue targets in recent

years, according to Chronicle surveys.

At many colleges and universities such

grim financial news has resulted in

severe budget cuts in the near-term,

and campus-wide discussions about

transforming the institutions for their

long-term financial sustainability. Many

institutional leaders are looking for

new sources of revenue, by opening

up untapped markets for students,

particularly overseas; designing new

academic programs that are in demand

by employers; or improving retention

and graduation rates. At the same time,

many colleges are investigating ways to

cut costs by employing technology to

deliver course materials or encouraging

older tenured faculty members to retire.

All of these strategies have required

academic leaders to work more closely

with their campus counterparts

responsible for planning and financial

issues. As just one sign of these growing

alliances on campuses, national higher-

education associations, ranging from

the American Council on Education to

the Council for Independent Colleges,

now are convening annual meetings

that include both CAOs and CFOs.

To prepare better for the future of high-

er education, academic and campus

financial leaders need to develop a uni-

fied strategy to ensure their institutions

survive and thrive in the decades ahead.

This brief attempts to inform those

discussions. It is based on a survey of

provosts and chief financial officers

that explores their attitudes about the

future of higher education, the financial

sustainability of their institutions, the

future of the faculty, and academic

innovation.


7



THE STATE OF HIGHER EDUCATION IN 2015

A vast majority of business and academic officials believe that higher education is going in the wrong direction financially.

The U.S. economy has been on the upswing

in recent years. The unemployment rate has

been on a steady decline for the past five

years and economic growth has been rising,

even if slower than a decade ago.

Despite the rosy economic news, many

colleges still are struggling. Wage growth for

much of the U.S. has been stagnant, so col-

leges cannot increase tuition as much as they

want or need to offer bigger discounts to at-

tract students. And a decline in the number of

high-school graduates compared to the boom

of the past decade means that many colleges

are looking further afield for students.


8



FIGURE 1: HOW PROVOSTS AND CFOs FEEL ABOUT:

FIGURE 2: CHIEF ACADEMIC OFFICERS AND CHIEF FINANCIAL OFFICERS BOTH AGREE THAT HIGHER EDUCATION IS MOVING IN THE WRONG DIRECTION

CAO

6%

37%57%

CFO

11%

39%50%

IN THE WRONG DIRECTION

IN THE RIGHT DIRECTION

NO OPINIONCFO

CAO

OVERALL

72%

70%73%

17%16%

20%

11%11%

10%

Those divergent pathways for the

economy and higher education were

apparent in the survey of CFOs and

provosts. Compared to a year ago, both

CFOs and provosts are more confident

in their outlook for the U.S. economy.

But when it comes to their own

institutions, one-third of senior college

officials are less optimistic about the

financial prospects for their campuses

(see Figure 1). Indeed, a vast majority

of business and academic officials

believe that higher education is going

in the wrong direction financially

(see Figure 2).

STATE OF THE ECONOMY

MORE OPTIMISTIC

2-YEAR

PRIVATE 4-YEAR

PUBLIC 4-YEAR

OVERALL

NO CHANGELESS OPTIMISTIC

45% 34%

41%

31%

37%

21%

30%

22%

28%

47%

29%

35%

THEIR OWN INSTITUTIONS

NO CHANGE

MORE OPTIMISTIC

LESS OPTIMISTIC


9



FIGURE 3: TOP CONCERNS AMONG FINANCIAL AND ACADEMIC EXECUTIVES

According to the survey, leaders at

four-year public institutions were the

least optimistic, and for good reason.

States are essentially getting out of the

business of public higher education.

College students and their families,

who just a decade ago paid for about

one-third of the cost of their education

at public institutions, are on track to

pay for most of it. In nearly half of the

states, they already do.

The decline in state support is by far the

No. 1 worry for financial and academic

executives at public institutions. By

comparison, the top issue at private

colleges is the growing competition for

students. Ability to raise tuition is a big

concern for both sectors (see Figure 3).

PUBLIC 4-YEAR PRIVATE 4-YEAR2-YEAROVERALL

COMPETITION FOR STUDENTS

DECLINE IN STATE FINANCIAL SUPPORT

ABILITY TO RAISE TUITION

TUITION DISCOUNT RATE

ATTRACTING AND RETAINING QUALIFIED FACULTY AND STAFF

COST OF STUDENT SERVICES AND FACILITIES

COST OF HEALTH CARE

DECLINE IN FEDERAL FINANCIAL SUPPORT

FINANCIAL SUPPORT FROM ALUMNI

59%43%

53%73%

37%33%

44%33%

28%36%

37%22%

27%31%

18%31%

19%31%

13%16%

16%16%16%

15%

9%3%

12%

33%6%

61%

41%75%

81%6%


10



PUBLIC 4-YEAR PRIVATE 4-YEAR

MEETING STUDENTS’ FINANCIAL NEEDS

TECHNOLOGY IMPROVEMENT AND MAINTENANCE

MEETING REGULATORY REQUIREMENTS

PHYSICAL PLANT MAINTENANCE

FACULTY SALARY INCREASES

HEALTH INSURANCE AND OTHER HEALTH CARE COSTS

NEED TO BE COMPETITIVE IN OFFERING MERIT-BASED SCHOLARSHIPS

DECLINE IN STATE SUPPORT

2-YEAROVERALL

FIGURE 4: THE BIGGEST COST DRIVERS IN HIGHER EDUCATION

42%51%

48%38%

43%33%

47%42%

55%26%

49%69%

45%43%

47%44%

41%50%

39%37%

39%5%

30%58%

39%65%

83%7%

51%58%

49%50%

Such anxieties were closely correlated

with what CAOs and CFOs said

were the biggest cost drivers at their

institutions: lack of state support and

student financial aid. But the rising

cost of technology improvements and

maintenance on campus also is seen as

another budget worry of top officials.

Across all sectors, some 50 percent

of provosts and financial officers saw

technology as a rising cost driver

(see Figure 4).


11



THE FUTURE OF THE FACULTY

While the overall economy is showing

signs of improvement, the effects of the

recession aren’t yet a thing of the past

in the academic job market. Signs of

recovery are uneven across fields and

within them. And it’s unclear when, if

ever, the number of academic jobs for

Ph.D.’s, new or otherwise, will return to

pre-recession levels. In an annual survey

from the National Science Foundation,

some 15,000 new Ph.D.’s said they had

accepted jobs in the United States, with

only about half of those positions in

academe.

Nearly four in 10 provosts and financial officers said that faculty members “frequently” stay on the job longer than the institution would like them to remain.


12



CAO CFOOVERALL

FACULTY MEMBERS OCCUPYING POSITIONS NEEDED ELSEWHERE AS THEY WORK PAST

TRADITIONAL RETIREMENT AGE

INABILITY TO OFFER JUNIOR FACULTY AND STAFF COMPETITIVE SALARIES AND

BENEFITS DUE TO DELAYED RETIREMENTS

GROWING HEALTH CARE COSTS FOR RETIREES

INABILITY TO CONTINUE CURRENT LEVEL OF RETIREMENT BENEFITS DUE TO

INSTITUTIONAL FINANCIAL ISSUES

39%38%

40%

35%33%

37%

49%48%

50%

54%

56%53%

The lack of opportunities for newly

minted Ph.D.’s is worrisome to both

CFOs and CAOs. About half of

them said in the survey that they are

concerned with their inability to offer

junior faculty and staff competitive

salaries and benefits due to delayed

retirements from older professors

(see Figure 5).

FIGURE 5: TOP CONCERNS ABOUT THE FUTURE OF THE FACULTY


13



FIGURE 7: PERCENTAGE OF CFOs AND PROVOSTS WHO SAY FACULTY UNDERSTAND FINANCIAL STANDING “VERY WELL”

FIGURE 6: HOW OFTEN FACULTY MEMBERS STAY ON THE JOB LONGER THAN THE INSTITUTION WOULD LIKE

SOMETIMES ALWAYSRARELY FREQUENTLYNEVER

6%

9%

7%

54%

51%

53%

37%

37%

37%

3%

1%

2%

2%

1%

CFO

CAO

OVERALL

While the majority of faculty members

retire between 65 and 70 years old,

according to the survey, nearly four in 10

provosts and financial officers said that

faculty members “frequently” stay on the

job longer than the institution would

like them to remain (see Figure 6). Most

faculty members are remaining, respon-

dents said, because of personal finances

and their love of the job.

One problem identified in the survey by

senior officials was that faculty members

rarely have a good grasp on the financial

standing of their own institutions. Only

16 percent of CFOs and CAOs said that

their professors understood the finances

of their colleges and universities “very

well” (see Figure 7).

OVERALL 16%

2-YEAR 14%

PUBLIC 4-YEAR 7%

PRIVATE 4-YEAR 21%


14



PROVOSTS MORE LIKELY THAN CFOs TO SAY THE IDEA OF ACADEMIC TRANSFORMATION IS OVERBLOWN

FIGURE 8:

TOMORROW’S COLLEGE: INSTITUTIONAL TRANSFORMATION

Ever since Clayton M. Christensen,

the Harvard Business School professor

and champion of disruptive innova-

tion, released a book in 2011 on how

higher education was about to undergo

massive transformation, colleges and

universities have been trying to use his

playbook to develop new approaches to

their future.

Whether Christensen is correct in his

predictions, however, was one key area

of disagreement between CFOs and pro-

vosts in the survey. Some 30 percent of

provosts said the current discussion about

the need for transformation in higher

education is overblown. Only 16 percent

of financial officers agreed (see Figure 8).

Many institutions are hiring

consultants or investing in technology to

help speed the pace of change

on campuses.

CAO

CFO

30%

16%


15



FIGURE 9: TRANSFORMING INSTITUTIONS

CAOCFO

WHO IS LEADING IT?

WHO IS DOING IT?

Even so, most institutions are undergoing

a process of rethinking their programs

and business models. Three-fifths of insti-

tutions are undergoing a “transformation

process,” according to the survey, with

the president or the president’s cabinet

leading the process (see Figure 9)

3%

2%

20%

34%

8%16%

7%1%

51%42%

6%

3%

PRESIDENT

PRESIDENT’S CABINET

PROVOST

TRUSTEES

CFO

DEANS

FACULTY

PRIVATE 4-YEAR

2-YEAR

OVERALL

PUBLIC 4-YEAR

63%

68%56%

66%


16



FIGURE 10: PROVOSTS AND CFOs WHO SAY IT WAS VERY EASY TO RECRUIT FOR MOST RECENT CABINET-LEVEL OPENING

FIGURE 11: SUCCESS RATE OF MOST RECENT SENIOR HIRE IN MEETING TRANSFORMATIONAL GOALS WITHIN 18 MONTHS

Much of the president’s leadership team,

however, is undergoing its own transfor-

mation. The aging of academic leader-

ship—the average president, for instance,

is 63 years old—means that many insti-

tutions are hiring new senior administra-

tors. But only one-third of institutions

described their most recent search for

a cabinet-level position as a “very easy”

process (see Figure 10). And when those

hires are made, provosts and CFOs seem

frustrated with the ability of the new

executives to achieve the transformative

goals assigned to them. Nearly a quarter

of survey respondents said that the new

hires were not successful in meeting

their goals, and another 30 percent were

neutral on whether mandates were met

(see Figure 11).

34%

21%

39%

OVERALL

2-YEAR

PUBLIC 4-YEAR

PRIVATE 4-YEAR

35%

2 43 5VERY SUCCESSFUL

1NOT SUCCESSFUL SOMEWHAT

UNSUCCESSFULNEUTRAL SOMEWHAT

SUCCESSFUL

4%

5%

17%

23%

17%

15%

12%

29%

25%

27%

35%

29%

25%

31%

28%

19%

15%

20%

18%

OVERALL

2-YEAR

PUBLIC 4-YEAR

PRIVATE 4-YEAR

6%


17



FIGURE 12: AMOUNT SPENT ON CONSULTANTS OR TECHNOLOGY INVESTMENT TO RAISE REVENUE AT YOUR INSTITUTION

Perhaps that’s why so many institutions

are hiring consultants or investing in

technology to help speed the pace of

change on campuses. Half of respon-

dents reported in the survey that they

either hired an external consultant or

made a major technology investment

in the past three years. Nearly 50

percent of institutions focusing on cost

cutting or a combination of spending

reductions and new revenue spent

$200,000 or more on such engage-

ments (see Figure 12).

REVENUE-GENERATIONINITIATIVE

COST-CUTTING INITIATIVE

REVENUE-GENERATIONAND COST-CUTTING INITIATIVES

$50 - $99K

30%

15%

23%

$200 - $299K

11%10%

13%

LESS THAN $25K

7%

4%3%

MORE THAN $300K

9%

33%34%

DON’T KNOW

11%

6%8%

$100 - $199K

24%

15%

11%

$25- $49K

8%

9%

16%


18



FIGURE 13: DEGREE TO WHICH TECHNOLOGY OR CONSULTANTS MET THEIR GOAL OF INCREASING REVENUE

32%46% 22%

42%32% 26%

38%41% 21%

44%38% 18%

OVERALL

2-YEAR

PUBLIC 4-YEAR

PRIVATE 4-YEAR

UNDER-DELIVERED GOALS WERE MET EXCEEDED THEIR PROMISE

UNDER-DELIVERED GOALS WERE MET EXCEEDED THEIR PROMISE

43%33% 24%

34%57% 9%

42%46% 12%

50%40% 10%

OVERALL

2-YEAR

PUBLIC 4-YEAR

PRIVATE 4-YEAR

DEGREE TO WHICH TECHNOLOGY OR CONSULTANTS MET THEIR GOALS OF REDUCING COSTS

But many top campus officials were

unimpressed with the results. Nearly

half of the provosts and chief financial

officers who responded to the survey

said that the consultants or technology

investments “under-delivered” on their

promises of increased revenue and

another 40 percent were disappointed

in the cost savings (see Figure 13).


19



THE PROMISE OF CHANGE: BEST PRACTICES, NEW TECHNOLOGYSome three-quarters of institutions said they are using or plan to use Big Data to improve decision making, and another half are using data analytics in academic advising.

In 2011, when a pair of Stanford University

professors opened up their Artificial Intelli-

gence course to the virtual world for free and

tens of thousands signed up, pundits and

even educators themselves predicted online

education would hasten the demise of tradi-

tional brick-and-mortar institutions. While

the so called Massive Open Online Courses

—MOOCs for short—have yet to redefine

higher education as many predicted, they

have generated a much-needed conversation

on many college campuses about how to im-

prove the quality of undergraduate teaching

to engage a new generation of students.


20



MOST PROMISING INNOVATIONS FOR THE FUTURE OF HIGHER EDUCATION

FIGURE 14:

2-YEAR PUBLIC 4-YEAR PRIVATE 4-YEAROVERALL

HYBRID COURSES

TECHNOLOGY THAT INCREASES INTERACTIONS AMONG STUDENTS

COMPETENCY-BASED EDUCATION

ADAPTIVE LEARNING TO PERSONALIZE EDUCATION

PRIOR LEARNING ASSESSMENT

FREE OR OPEN EDUCATION RESOURCES

MASSIVE OPEN ONLINE COURSES (MOOCS)

24%34%

27%19%

43%42%

44%40%

56%42%

57%61%

14%25%

16%10%

4%5%

4%3%

49%43%

50%50%

45%52%

42%41%

Indeed, while MOOCs themselves are

not seen as a particularly promising

innovation by provosts and CFOs,

the discussion surrounding massive

online courses in recent years has led

many campuses to consider other ways

technology can change the classroom of

the future. The most promising inno-

vations that have the potential to have

a positive impact on American higher

education, according to the survey

respondents, are hybrid courses,

technology-enabled interaction

between students, competency-based

education, and adaptive learning (see

Figure 14).


21



PRACTICES ALREADY PUT IN PLACE OR PLANNED IN THE NEXT FIVE YEARS

FIGURE 15:

DATA ANALYTICS TO IMPROVE INSTITUTIONAL DECISION MAKING

ENROLLING STUDENTS WHO ARE MORE LIKELY TO BE RETAINED

DATA-DRIVEN ACADEMIC ADVISING

EXPERIENTIAL LEARNING

ENCOURAGING OLDER FACULTY MEMBERS TO RETIRE

REDUCING THE TUITION DISCOUNT RATE

24%27%

12%32%

42%27%

52%41%

75%79%

84%67%

47%52%

69%36%

18%3%4%

34%

48%28%

50%56%

Innovative practices, mostly using

technology, are taking hold beyond the

classroom, too. Some three-quarters of

institutions said they are using or plan

to use Big Data to improve decision

making, and another half are using

or planning to use data analytics in

academic advising. The use of data in

advising is particularly popular among

public colleges and universities, accord-

ing to the survey (see Figure 15).

2-YEAR PUBLIC 4-YEAR PRIVATE 4-YEAROVERALL


22



CHANGES PROVOSTS AND CFOs FORESEE HAPPENING AT THEIR INSTITUTIONS IN THE NEXT DECADE

FIGURE 16:

PROVOSTS’ AND CFOs’ TOP COST CUTTING AND REVENUE GENERATING CHOICES IF WORRY ABOUT CONSTITUENTS WAS REMOVED

As they look to the decade ahead at

their institutions, CAOs and CFOs

were most bullish on online and hybrid

programs, increasing their enrollment,

and recruiting more adult students.

Very few of them believe that they will

need to close or merge their institu-

tions. But when asked to imagine their

future and select cost cutting or revenue

generating strategies without worrying

about the reactions among their various

constituencies, CFOs and CAOs

differed in a few of their answers.

CFOs, for instance, were more willing

to increase teaching loads of faculty

members, while CAOs were more

likely to want to increase tuition prices

(see Figure 16).

LAUNCHING ONLINE OR HYBRID DEGREE PROGRAMS

INCREASING OVERALL ENROLLMENT

ENROLLING MORE ADULT STUDENTS

PHYSICAL EXPANSION OF THE CAMPUS

EXPANDING INTO NEW GEOGRAPHIC MARKETS

ENROLLING MORE LOW-INCOME STUDENTS

LAUNCHING COMPETENCY-BASED DEGREE PROGRAMS

ELIMINATING GRADUATE OR PROFESSIONAL PROGRAMS

EXPANDING CO-OP EDUCATION

MERGING PROGRAMS WITH NEIGHBORING INSTITUTION

REDUCING REQUIRED CREDIT HOURS FOR STANDARD B.A.

ELIMINATING GRADUATE OR PROFESSIONAL PROGRAMS

REDUCING OVERALL ENROLLMENT

MERGING MY INSTITUTION WITH ANOTHER COLLEGE

CLOSING MY INSTITUTION

82%

80%

67%

60%

58%

51%

39%

29%

29%

17%

16%

8%

8%

7%

1%

CFO

CAO

OVERALL

INCREASE TEACHING LOADS

INCREASE TUITION

INSTITUTE A MANDATORY RETIREMENT AGE

ELIMINATE TENURE

HIRE MORE ADJUNCT FACULTY MEMBERS

INCREASE ENROLLMENT BY CHANGING ADMISSIONS STANDARDS

CUT STUDENT SERVICES

30%41%

15%

19%13%

27%

13%8%

19%

10%10%

9%

5%5%5%

4%5%

2%

4%4%3%


23



CHIEF ACADEMIC & FINANCIAL OFFICERS: THE STATE OF THEIR PROFESSIONS

At the top of colleges and universities,

the pressure to perform in recent years

has led to many high-profile departures

among presidents. While provosts and

chief financial officers clearly feel those

pressures, both groups of individuals

are remarkably happy in their jobs.

Some 70 percent reported in the survey

that they are “extremely satisfied” in

their current positions, and 80 percent

of them said they were “very well

prepared” to handle the pressures of

their current job.

Some 70 percent of CFOs and CAOs reported in the survey that they are “extremely satisfied” in their current positions, and 80 percent of them said they were “very well prepared” to handle the pressures of their current job.


24



Still, both groups face challenges,

and those issues differ substantially

depending on the job. Provosts report

much more difficulty working with

faculty members, for instance, than do

CFOs, while financial officials said they

are challenged by managing technology.

CFOs are also more likely than CAOs

to say that they have a difficult time

working with other members of the

senior administrative team at the

institution (see Figure 17).

The issues faced in their current job has

only slightly diminished the ambitions

of provosts to pursue a presidency

within the next five years. About 50

percent of provosts in the survey said

they had a desire to become a president

before they started in their current

position; now about 43 percent of them

want to become a president in the next

five years (see Figure 18).

TOP CHALLENGES FACED AS A SENIOR ADMINISTRATOR IN HIGHER EDUCATION

INTEREST IN BECOMING A COLLEGE PRESIDENT IN THE NEXT 5 YEARS

FIGURE 17:

FIGURE 18:

CFO CAO

WORKING WITH THE FACULTY

MANAGING TECHNOLOGY

WORKING WITH OTHER MEMBERS OF THE SENIOR ADMINISTRATIVE TEAM

WORKING WITH THE PRESIDENT

DEVELOPING CAREER PATHS FOR STAFF

13%

19%

20%

17%9%

25%

30%

11%

19%

13%

16% 43%

20%CFO

CAO


25



CONCLUSION

With the overall economy improving,

provosts and chief financial officers are

upbeat about the future but still have

grave concerns about the fiscal health of

their own institutions and even higher

education as a whole. The disinvest-

ment in higher education by the states

and the competition for students

worldwide clearly are weighing on their

minds as they plan for the next decade.

That planning has become more

difficult with a substantial portion of

tenured faculty members remaining on

the job past the traditional retirement

age, giving institutions little flexibility

to hire new professors, give raises, or

reduce personnel costs. While provosts

and CFOs in the survey disagree on the

extent of change their institutions need

to undergo, they clearly desire some

level of transformation and the pace of

that change, whether provided by new

leadership or outside consultants, has

been a disappointment to both groups

of senior executives.

The promise of new technologies and

data to inform decision making gives

them hope that the direction of higher

education can be changed in the years

ahead. There is enthusiasm in the

survey about the possibilities of Big

Data and hybrid education. Provosts

and CFOs remain key decision makers

in the race to shape the future of higher

education, and the fact that they tend

to agree so often on some key issues

could give their presidents and trustees

confidence that their institutions will

more than survive in the decade ahead.

The promise of new technologies and data to inform decision making gives hope that the direction of higher education can be changed in the years ahead.


26



METHODOLOGY

The results of Managing the Enterprise: How Provosts and Chief Financial Officers are

Navigating the Future of Higher Education are based on responses from chief aca-

demic officers and chief financial officers at private, not-for-profit four-year, public

four-year, and public two-year institutions. Huron Consulting Group conducted

the online survey for The Chronicle. Of those invited, 400 college officials com-

pleted the survey. The data collection took place in February 2015.

Managing The Enterprise: How Provosts and Chief Financial Officers are Navigating the Future of Higher Education is based on a survey conducted by Huron Consulting Group, was written by Jeffrey J. Selingo, contributing editor at The Chronicle of Higher Education, Inc. and is sponsored by Axiom. The Chronicle is fully responsible for the report’s editorial content. Copyright © 2015.


Visit axiomepm.com/highered to learn more about the Axiom EPM platform and request a free demonstration.

FINANCIAL PERFORMANCE MANAGEMENT FOR HIGHER EDUCATION

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Secondary Full pg.pdf 1 4/30/2015 12:58:47 PM

1255 Twenty-Third Street, N.W. Washington, D.C. 20037

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Copyright © 2015

©2015 by The Chronicle of Higher Education, Inc. All rights reserved. This material may not be reproduced without prior written permission of The Chronicle. For permission requests, contact us at [email protected].

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